South Carolina Nursing Home Blog : South Carolina Nursing Home Lawyer & Attorney : Poliakoff & Associates Law Firm : Elderly Care, Senior Care

Nevada Appeal had an article about the sale of the building where Evergreen Mountain View Health and Rehabilitation Center operates for $8.2 million from Evergreen’s parent company, Vancouver, Wash.,-based Evergreen Healthcare.  Chicago based Aviv Asset Management bought the building and will keep the same management team.  Evergreen took over management of the 146-bed nursing home in 2002.   It bought the building for $5 million in 2005.  So in less than 4 years, the value of the building itself (not the on going nursing home operation) increased by $3.2 million.  some thing smells fishy about this deal.

Josh Kocheck, asset director for Aviv, said Aviv is a real estate business and will serve only as a landlord.  He said people are concerned when a nursing home gets a new owner, but Aviv has no intentions of running a healthcare company.   Evergreen Healthcare runs other nursing homes. It has 58 nursing homes concentrated in Western states.

Aviv owns about 125 nursing homes across the country, according to the company.

Evergreen Mountain View has had several problems with government agencies since its parent company started managing it.   It was the only nursing home in the state that made the Centers for Medicare and Medicaid Services list of 131 worst nursing homes last year. As a “special focus facility,” the state checked the nursing home twice a year rather than the usual once a year from 2004 to 2008.

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The New york Times had an article explaining the Obama administration's plan to overhaul financial regulation by subjecting hedge funds and traders of exotic financial instruments to potentially strict new government supervision. Many of these hedge funds and financial instruments own or have a financial stake in numerous nursing homes around the country.  It states that the government would have the power to peer into the inner workings of companies that currently escape most federal supervision, and specifically cites "private equity firms like the Carlyle Group."   

The Carlyle Group bought out Manor Care a couple of years ago and have created sham L.L.C.s to protect themselves from liability while cutting the budgets of the nursing homes that they own.  In fact, two men who worked in the New York State comptroller’s office were arrested recently after it was discovered they took millions of dollars in kickbacks from private equity and hedge funds.  David Loglisci, who was the top investment officer of the state’s $122 billion pension fund, along with Henry Morris, who fund-raised for former comptroller Alan Hevesi, were nailed in a 123-count indictment, which included charges of money laundering, securities fraud and bribery. It was discovered that over 20 transactions made by the pension fund involved kickbacks, with five of those coming from the renowned private equity fund The Carlyle Group. Morris, who was released after posting a $1 million cash bail, allegedly received $13 million from The Carlyle Group, from investments that totaled $730 million.

The administration would require that all standardized derivatives be traded through a regulated clearinghouse. Traders would be required to provide documentation on their collateral and borrowings. They would also be subject to new eligibility requirements, and their trading and settlement practices would be subject to new standards.

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The indictment alleges that the men ran about 70 nursing homes in Texas and other states and were responsible for a $200 million operation but hid their control of the facilities. Payroll companies: More than 150 sham payroll companies were created to avoid paying taxes, according to the indictment.

A former Hurst nursing home executive who crisscrossed the Atlantic as part of a tax-evasion scheme pleaded guilty Wednesday to conspiring to cheat the IRS out of $34 million.

As part of a plea agreement, Larry G. May will cooperate with the prosecution of two of his former North Texas business associates, who the government said helped control the nursing homes involved.  May, Stephen Michael Ewing of Bedford and Gary R. Trebert of Frisco were indicted in March on 29 federal counts including mail fraud, making false statements to a government agency, and defrauding the IRS and the U.S. Health and Human Services Department.

May also pleaded guilty Wednesday to perjuring himself by signing false tax returns for 63 nursing homes with payroll taxes totaling $4.45 million.  

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